Quick Note - Indonesia FMCG - 2Q26F result preview: Strong earnings likely

Research evidence excerpt

Quick Note - Indonesia FMCG - 2Q26F result preview: Strong earnings likely

Nomura Securities Malaysia Sdn Bhd

13 July 2026Indonesia FMCG

EQUITY: CONSUMER RELATED

2Q26F result preview: Strong earnings likely Research Analysts

Indonesia Research Team

Heng Siong Kong - NSMQuick Note hengsiong.kong@nomura.com

+603 2027 6894

Free meal programs + agriculture incentives drive consumption

Based on our survey of 25 large FMCG firms in Indonesia, we conclude that consumption Onshore expert

toward FMCG in 2Q26F remained strong in comparison to the same period of last year, Sandy Ham (sandy.ham@verdhana.id),

which we believe will likely be reflected in robust revenue growth of FMCG firms (see Fig.

1). Interestingly, we found that most of the consumption growth is attributable to lower-tier Samuel Christian

cities (see Fig.9-11). A surge in free-meal-program disbursement (IDR88.0tn in 5M26 vs (samuel.christian@verdhana.id),

IDR3.5tn in 5M25; see Fig.5) was the main factor supporting consumption, in our view. Jody Wijaya (jody.wijaya@verdhana.id),

We note that >90% of kitchens are located in lower-tier cities. In addition, farmers in rural and

and lower-tier cities also earn higher profit on the back higher paddy, corn, and palm oil

selling prices (see Fig.6-8) set by the government, noting that Indonesia has a huge Nayla Yasmin

farmer population of around 28mn. (nayla.yasmin@verdhana.id),

In terms of product category, dairy-related products continued to outperform, thanks to Theonshoreexperts,whoare

incremental demand from free meal kitchens, which may see continued strong revenue employedbyPTVerdhanaSekuritas

growth for Ultrajaya (ULTJ IJ, Buy), Mulia Boga Raya (KEJU IJ, Buy), and Cisarua Indonesia(“Verdhana”)andarenot

Mountain Dairy (CMRY IJ, Buy).